REG - Castillo Copper Ltd - Advancing copper projects with key appointment

Castillo CopperAnnouncement

28/03/2023 07:00

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RNS Number : 3850U  Castillo Copper Limited  28 March 2023

28 March 2023

 

 

CASTILLO COPPER LIMITED

("Castillo", or the "Company")

 

 

Advancing copper projects with key appointment

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, is pleased to announce that it
has appointed a service provider to progress development work at the Big One
Deposit, and that the Castillo geology team is progressing work to update and
enhance the confidence in the 2017 inferred JORC Mineral Resource Estimate
("MRE") for Cangai Copper Mine.

 

HIGHLIGHTS:

·    With the long-term demand outlook for copper remaining positive,
especially with the transition to green energy gaining increased traction,
there is likely to be persistent upward pressure on the price and greater
exploration to establish new supply chains

 

·    With this positive backdrop, the Board has been progressing plans to
expedite developing the copper assets, with the following service provider
appointment as well as work conducted on the Cangai resource by the Castillo
geology team:

 

·    Entech Mining(1) will undertake a pit optimisation and mine design
study for the Big One Deposit (NWQ Copper Project Mt Isa copper belt), which
has an inferred JORC MRE at 2.1Mt @ 1.1% Cu for 21,886t(2) copper metal:

o If the findings are positive then next steps comprise determining the
optimal path to market and effective use of third-party processors

o Concurrently, work can focus on capitalising on Big One Deposit's
exploration potential via drill-testing known targets north of the line of
lode

o Interest in the Mt Isa copper belt is significant, as Castillo's footprint
is proximal to ground owned by majors including Rio Tinto, Anglo America, Teck
& Glencore

 

·    The Castillo geology team will update and enhance the confidence in
the 2017 inferred JORC MRE for Cangai Copper Mine (northern NSW) - 107,589t
contained copper metal (3.2Mt @ 3.35%)(3):

o Critically, drilling work post-2017, which includes 34 RC drill-holes for
circa 5,000m(4), will be factored into the geological model

o Notably, Cangai Copper Mine still delivers exploration potential as DHEM
surveys(4) in 2018-19 identified several untested bedrock conductors that are
open at depth

 

Ged Hall, Chairman of Castillo Copper, said: "The Board is well versed in the
current global demand-supply dynamics for copper which by all accounts
suggests explorers, like Castillo Copper with inferred resources, are
potentially prime beneficiaries. Having recently outlined plans to ramp up
advancing the Big One Deposit and Cangai Copper Mine, the Board is delighted
to announce the appointment of this key service provider to progress
development work."

 

ADVANCING WORK ON COPPER ASSETS

Big One Deposit, NWQ Copper Project

The Board has appointed Entech Mining(1) - a multi-disciplinary specialist
mining consultant - to undertake a pit optimization and mine design study for
the Big One Deposit (Inferred MRE: 2.1Mt @ 1.1% Cu for 21,886t(2) copper
metal). Contingent on the study's findings, next steps potentially comprise
detailing effective processing options and viable path to market.

In addition, there are known targets north of the line of lode, which deliver
exploration potential, that require drill-testing to extend known
mineralisation.

In recent years, interest in the Mt Isa copper belt has grown significantly.
Notably, Castillo's footprint is proximal to ground owned by major mining
groups including Rio Tinto, Anglo American, Teck and Glencore (Figure 1).

FIGURE 1: NWQ COPPER PROJECT RELATIVE TO PEERS

Source: CCZ geology team

 

Cangai Copper Mine

For Cangai Copper Mine, the Board has tasked the Castillo geology team with
updating and enhancing the confidence in the 2017 inferred JORC MRE (107,589t
copper metal; 3.2Mt @ 3.35%)(3). A key feature will be including drilling work
post-2017, which includes 34 RC drill-holes for circa 5,000m(4), into the
geological model.

To re-iterate, Cangai Copper Mine still delivers exploration potential as DHEM
surveys(4) in 2018-19 identified several untested bedrock conductors that are
open at depth (Figure 2).

FIGURE 2:  CANGAI COPPER MINE - CONDUCTORS & DRILL-HOLES

Source: CCZ geology team

 

 

For further information, please contact:

 

 Castillo Copper Limited                                             +61 8 6558 0886 
 Dr Dennis Jensen (Australia), Managing Director                      

 Gerrard Hall (UK), Chairman 
                                                                      
 SI Capital Limited (Financial Adviser and Corporate Broker)         +44 (0)1483 413500 
 Nick Emerson                                                          
                                                                       
 Gracechurch Group (Financial PR)                                    +44 (0)20 4582 3500
 Harry Chathli, Alexis Gore, Henry Gamble                             

 

About Castillo Copper

 

Castillo Copper Limited is an Australian-based explorer primarily focused on
copper across Australia and Zambia. The group is embarking on a strategic
transformation to morph into a mid-tier copper group underpinned by its core
projects: 

 

·    A large footprint in the Mt Isa copper-belt district, north-west
Queensland, which delivers significant exploration upside through having
several high-grade targets and a sizeable untested anomaly within its
boundaries in a copper-rich region. 

·    Four high-quality prospective assets across Zambia's copper-belt
which is the second largest copper producer in Africa. 

·    A large tenure footprint proximal to Broken Hill's world-class
deposit that is prospective for zinc-silver-lead-copper-gold and platinoids.
 

·    Cangai Copper Mine in northern New South Wales, which is one of
Australia's highest grading historic copper mines. 

 

The group is listed on the LSE and ASX under the ticker "CCZ." 

 

Competent Person's Statement

The information in this report that relates to Exploration Results and Mineral
Resource Estimates for "Big One and Cangai Copper Mines" is based on
information compiled or reviewed by Mr Mark Biggs.  Mr Biggs is a director of
ROM Resources, a company which is a shareholder of Castillo Copper Limited.
ROM Resources provides ad hoc geological consultancy services to Castillo
Copper Limited.  Mr Biggs is a member of the Australian Institute of Mining
and Metallurgy (member #107188) and has sufficient experience of relevance to
the styles of mineralisation and types of deposits under consideration, and to
the activities undertaken, to qualify as a Competent Person as defined in the
2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for
Reporting of Exploration Results, and Mineral Resources. Mr Biggs holds an
AusIMM Online Course Certificate in 2012 JORC Code Reporting.  Mr Biggs also
consents to the inclusion in this report of the matters based on information
in the form and context in which it appears.

 

References

 

1)        Entech Mining. Available at: https://entechmining.com.au

2)        CCZ ASX Release - 28 February 2022 & 20 February 2023

3)        CCZ ASX Release - 28 September 2018 (Annual Report 2018), 3
September 2018, 19 February 2020, 28 April 2020 & 9 March 2023

4)        CCZ ASX Release - 3 September 2018 & 11 December 2018

 

 

 

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